Order of operations for market trend analysis

[Terrel L. Shields]

Concession.

 

[Fernando]

Is it an indication that rents are too high? Or tenant is not that strong and Buyer only assured first year's rent is guaranteed?

 

[ZZGAMAZZ]

We should make terms of sale/concessions and then any terms of financing adjustments in the first two steps, but even if we make them last or out of order, the beauty of the computer doing the math is that it works from top own to the same $ amount either way. You can experiment with your own software to see it, put a comp on the grid, adjust for concessions first, then take that out and make the adjustment last; the computer mathematically makes the adjustments from top line on grid down anyway

I never used it but I vaguely recall that the ACI SCA grid has a percentage option rather than the absolute dollar amount I always use. If a percentage option is available,would the results be the same regardless of the sequence?

 

[NC Appraising]

I adjust half baths, fireplaces and patios at $500 first. This tends to tighten up the range and more importantly reduces rejections from the AMC and uw. Less rejections more work.

I also rarely ajust for quality and condition. Once you do you have to explain, support and then wait for more rejections from the uw. Much easier just to not make adjustments....my reports seem to fly under the radar with lenders and those AMCs.

Skippy.

 

[J Grant]

I never used it but I vaguely recall that the ACI SCA grid has a percentage option rather than the absolute dollar amount I always use. If a percentage option is available,would the results be the same regardless of the sequence?

Idk, too lazy too find out! Do a sample grid each way on your own software and let me know!